Halifax 'Clarity' exchange rates

Wammer

You have left it too late to get the Halifax Clarity card as it takes approx 3 weeks from application to receiving the card and pin number.

djbenny1

Ah - shoot.

Oh well, I guess I'll have to take the hit this time then.

Could anyone who is able possibly answer my questions regarding rates anyway please? As now that I know about it, I would like to possibly do something like this in future as I travel quite often.

Thanks

Wammer

You will get the rate on the day roughly in line with www.xe.com Compare that to the rate you would get elsewhere

Biggles

djbenny1 wrote: »

Let's use a worst case scenario and assume I withdraw £500 on the first day of my holiday, 3rd July, and pay it back 2 weeks after I return, say 27th (pointless example I know but I believe it's worst case?).

How much interest would I expect to pay assuming the entire £500 spending money is withdrawn from ATMs.

Here's a practical example: I drew out a total of £1,225 abroad early last month, spread over a bit less than a week, and paid £1,230 to the card the day after my last withdrawal. My total interest charged was £1.17.

A 'normal' credit card, charging 3%, would be charging you £15, a bureau de change £20 upwards.

grumbler

Wammer wrote: »

You will get the rate on the day roughly in line with www.xe.com Compare that to the rate you would get elsewhere

Not that it will be much different, but definitely more accurate: https://www.mastercard.com/global/currencyconversion/

zagfles

Biggles wrote: »

Here's a practical example: I drew out a total of £1,225 abroad early last month, spread over a bit less than a week, and paid £1,230 to the card the day after my last withdrawal. My total interest charged was £1.17.

A 'normal' credit card, charging 3%, would be charging you £15, a bureau de change £20 upwards.

Maths is a bit out - 3% of £1225 is £36.75. BDC's usually mark the rates up 5% or so, so probably over £60. Compared to just over £1 with the Clarity.

southantrim3

virgo17 wrote: »

I have used the Halifax Clarity card for overseas spending on numerous regular occasions. Here are my observations:-

1. It offers one of the best exchange rates abroad
2. Halifax make no charge for overseas use. The only exception is that interest at your agreed rate will be applied to cash withdrawals from the date they are applied to your account. Be aware that some ATM operators in some countries may levy their own charge which should be shown.
3. Always ensure that when using the card abroad you pay in local currency. Do not allow the shop to charge you in GBP.
4. The conversion rate is shown both on your paper and/or downloadable monthly statement.
5. The conversion rate is not shown on the online transaction summary but is trivial to calculate.

All in all one of the best credit cards for both purchases and ATM use abroad. IMHO.

Read through a lot of this thread but this post is an excellent summary of the brilliant Halifax Clarity card. (No I don't work for Halifax ha.)
I used the card in Canada and it was cheaper to withdraw cash from a Canadian cash machine using the card than from ordering money from the Post Office before I left.
Just to re-iterate, always buy in local currency, retailers will always try to get you to buy in Sterling and you'll pay for that. If you go with the local currency then there is no exchange fee at all.

Clarity card is an excellent product!

(Plus I'm lucky enough to get £5 each month if I spend £300 on the card, you need their current a/c for that privelege though...)

djbenny1

zagfles wrote: »

Maths is a bit out - 3% of £1225 is £36.75. BDC's usually mark the rates up 5% or so, so probably over £60. Compared to just over £1 with the Clarity.

So basically its around 0.1% interest a week?

grumbler

This depends on your APR.
For a 'representative' 12.95% it's about 1% per month and 0.25% per week.
As simple as that.

eskbanker

djbenny1 wrote: »

So basically its around 0.1% interest a week?

No, as per grumbler's post it's more like 0.25% per week, based on the best APR - the poster who paid £1.17 on £1,225 had withdrawn the cash in multiple transactions over a week so the average balance was less than £1,225, therefore increasing the derived weekly rate.